The following is a business model design for a new lavender farm near Boise, Idaho.
- Plant plugs nursery
- Distillery equipment
- Batten Ranch Bees
- Retail resale stores
- AirBnB or similar
GROW ORGANIC LAVENDER
Prepare ground, set up irrigation, plant plugs, weed, water, fertilize/amend soil
PROVIDE FRESH FLOWERS AND VALUE ADDED PRODUCTS
U-pick, online, and local markets
SELL DIRECT TO CONSUMER AND/OR WHOLESALE
Wholesale, value-added products, u-pick, farmer’s market, ETSY, local retailers
VALUE ADDED SERVICES
AirBnB (RV pad, yurt rental), professional photography use, wedding venue, classes (wreath-making, oil extracting, soap-making)
LOCAL U-PICK CUSTOMERS
Within reasonable driving distance, diverse group of all ages and backgrounds.
SHORT-TERM RENTAL CUSTOMERS
Local, regional, or travelers who want a non-standard but comfortable and unique stay experience.
Restaurants, value-added product producers, retail outlets.
Local or regional, diverse backgrounds, wanting a beautiful, unique, simple, safe, affordable, convenient experience.
- Supplies: Plant plugs, soil amendments, hardware for irrigation and weed control, tractor, water, time/energy, proper weather
- Distribution: On-site u-pick, retail outlets (farmers’ market), wholesale (distributors, culinary outlets)
- Start-up Costs: Tractor, plant plugs, weed barrier fabric, drip irrigation system, soil amendments, set-up labor if necessary
- Sinking Costs: Expansion, replacement (plant life span is approximately 10 years)
- Fixed Costs: Mortgage payment on house/land, electric costs for running the well pump for irrigation, pest control
- From Customers: Sale of U-pick flowers, lodging income, photography usage fees, sale of value-added products (online and in-person).
- Pricing: Bunches of fresh cut lavender sell for $5-$6 each. Value-added products have a much greater profit margin but require a lot more time/effort to create. Profits can be as much as $120,000 per acre of healthy, mature lavender.
- Ancillary Income: YouTube Channel ad revenue, partnerships.